The members of Riigikogu passed on December 19, a series of tax changes pushed for by the new Estonian government that set forth increasing excise tax for fuel, light alcohol and raising considerably level of income exempt from income tax.
The proposals adopted by 55 votes for and 37 against cancel the 0.5% cut in the social tax rate planned for 2017, as well as an increase from 9% to 14% in the VAT rate on accommodation services.
The current Estonian general basic income tax exemption would increase from the present 170 euros to 500 euros a month as of 2018 and the exemption for personal income of 2,100 euros a month or higher would be lifted.
Excise duty rates on principal fuels will be cut and a hike in the diesel fuel duty planned for 2018 would be cancelled, but rate on natural gas will increase by 25% over 2018-2020.
The excise tax rates for low alcohol content beverages – beer, cider and wine – are planned to be leveled off with the rates for spirits. (BNN/Business World Magazine)
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